At the end of 2019, state-run hospitals owed more than 3.1 billion kuna (€417 million) to wholesale drug suppliers for drugs delivered, while the average debt payment is more than 1,000 days late, the association of wholesale drug suppliers with the national chamber of commerce HGK warned on Wednesday.

The failure of hospitals to pay for drugs delivered is a chronic problem of the health care system in Croatia, with private-owned suppliers regularly issuing warnings about unsettled debts.

In July 2018 wholesalers said that the country’s hospitals generate nearly €11 million of new debt every month, and in April last year the debt – i.e. unpaid bills which have missed payment deadline by 60 days or more – was around €300 million.

Although the state-run public health fund HZZO agreed in September to pay another €68 million by end of year, the debt still ballooned to €417 million by 31 December 2019.

According to wholesalers, the level of debt has reached new heights.

“The hospitals’ debt has reached a record-high level. This is a problem that is of public interest, so it is necessary that all stakeholders get involved, in order to highlight the serious nature of the situation,” the association said on Wednesday.

The problem adds to the list of burning issues that the newly appointed Health Minister, Vili Beros, has to tackle only days after taking office last week, in addition to the ongoing strike of paramedics and ambulance drivers in Zagreb over salaries, as well as the unpaid and unregulated overtime work performed by many physicians in an under-stuffed and under-funded health care system.

(€1 = 7.44 kuna)